In this article, we will look at the 10 Best Strong Buy Healthcare Stocks to Buy Now.
On July 21, Jared Holz, Mizuho health care sector strategist, appeared on CNBC’s ‘The Exchange’ to talk about whether any opportunity plays exist within the healthcare sector, and what pains the sector is facing.
He stated that he is certainly frustrated about the current dynamics in healthcare, admitting that it would be great to cover a sector that outperforms the market once in a while.
The strategist said that when one looks back at healthcare versus the market in the past decade, and even more, the only years the sector has outperformed are when the market was down, and that isn’t a great setup either. A cascading effect of issues exists in large-cap pharma, which Holz considers a significant factor affecting the industry’s performance.
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He further told CNBC that this is the worst the healthcare sector has ever traded, and nothing even comes close to this much pressure across the board if we go back a couple of decades. Holz named pharma and managed care as the biggest culprits, stating that they are carrying the most weight from a market-cap standpoint.
With these trends in view, let’s look at the best strong buy healthcare stocks to buy now.
A healthcare provider holding an MRI scan of a patient with a traumatic brain injury.
Our Methodology
We used Finviz and Tipranks to make a list of strong buy healthcare stocks and then selected the top 10 with consensus Strong Buy ratings and the highest number of hedge fund holders as of Q1 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was sourced on July 23.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Strong Buy Healthcare Stocks to Buy Now
10. BridgeBio Pharma, Inc. (NASDAQ:BBIO)
Number of Hedge Fund Holders: 59
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is one of the best strong buy healthcare stocks to buy now. On July 14, Leerink Partners analyst Mani Foroohar maintained a Buy rating on BridgeBio Pharma, Inc. (NASDAQ:BBIO) and set a price target of $56.00.
The analyst based the rating on the company’s promising future prospects, stating that it is poised to expand its portfolio beyond the launch of Attruby in ATTR-CM, with three Phase 3 readouts anticipated in the next nine months.
The analyst sees this diversification as an optimistic development as it reduces the company’s reliance on a single asset, potentially bolstering its market position.
Foroohar also identified the BBP-418 program in limb-girdle muscular dystrophy type 2I/R9 (LGMD2I/R9) as a notable opportunity for BridgeBio Pharma, Inc. (NASDAQ:BBIO), as it is a high-margin asset that focuses on a rare disease with considerable unmet needs.
This offers BridgeBio Pharma, Inc. (NASDAQ:BBIO) pricing flexibility and paves the way to accelerated approval, according to the firm.
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is a commercial-stage biopharmaceutical company that discovers, creates, tests, and delivers transformative medicines to treat patients suffering from genetic diseases and cancers.
9. DexCom, Inc. (NASDAQ:DXCM)
Number of Hedge Fund Holders: 60
DexCom, Inc. (NASDAQ:DXCM) is one of the best strong buy healthcare stocks to buy now. On July 16, Mizuho analyst Anthony Petrone raised the firm’s price target on DexCom, Inc. (NASDAQ:DXCM) to $100 from $95 while keeping an Outperform rating on the shares.
The rating update came with the firm adjusting price targets in the medical devices and diagnostics sector ahead of Q2 2025 earnings. DexCom, Inc. (NASDAQ:DXCM) is set to report its Q2 results on July 30.
DexCom, Inc. (NASDAQ:DXCM) is a medical device company that manufactures continuous glucose monitoring (CGM) systems to allow real-time health management control. Specializing in diabetes care technology, the company helps improve and simplify diabetes management worldwide.
It offers various medical devices and products, including Dexcom G6, Dexcom G7, Dexcom Stelo, Dexcom Share, Dexcom Real-Time API, and Dexcom ONE.
